The following income statement was drawn from the records of Phisig Incorporated, a manufacturing business Sales 1,400,000 680,000 Cost of Goods Sold Gross Margin Sales Commissions 720,000 (100,000) (150,000) (80,000) (160,000) (130,000) 100,000 Administrative salaries expense Advertising Expense Depreciation Expense Shipping and Handling Net Income REQUIRED 1. Reconstruct the income statement using the contribution margin format. Assume COGS is variable and Advertising fixed Don't forget to categorize all of the other expenses into fixed and variable (sales commissions, admin salaries, depreciation and shipping & handling) 2. Calculate the magnitude of operating leverage 17 percent 3. Use the measure of operating leverage to determine the amount of net income Phisig will earn if sales increase by